National rental report does not paint full picture of tenant experience, says industry body

National rental report does not paint full picture of tenant experience, says industry body

The Real Estate Institute of Western Australia (REIWA) says the issues raised in a new rental report don't paint an accurate reflection of the market.

Image supplied by REIWA

Pictured: Damian Collins, REIWA President

The report, Disrupted: The Experience Of Renting In Australia, was commissioned by consumer group Choice, housing affordability peak body National Shelter, and the National Association of Tenant Organisations.

The national report found 51 per cent of Australian tenants were in homes in need of repairs and that tenants were required to move more often than they would like due to insecure tenancies, which was putting them under undue financial stress.

REIWA President Damian Collins says that while the industry body was taking the issues raised in the report seriously, it's important to remember the cases highlighting tenants being extremely dissatisfied with their rental experience represents only a small proportion of the private rental market.

“There is no doubt that the shifting economic climate is having an effect on the rental market, with tenants having increasingly complex needs, however, these cases of dissatisfaction are a minority in a system that is working well for the overwhelming majority,” Mr Collins told WILLIAMS MEDIA.

Mr Collins says a recent study conducted by the Bankwest Curtin Economic Centre found that only five per cent tenants would rate their relationship with their property manager as poor or terrible, compared with 69 per cent who said their experience was good or excellent.

“The findings of the Bankwest Curtin Economic Centre study illustrate that overall the rental market is working well for the majority of tenants. It is important that any decision-making takes into consideration the sector in its entirety and is not a knee-jerk reaction to minority cases,” Mr Collins said.

“There is no doubt the recent property market surges in the Eastern States would have seen rentals in short supply causing some of the anxieties felt by tenants. In WA, however, the market is very much in favour of tenants, with the median rent having remained at $350 per week since April 2017.

“Tenants are far less likely to experience inappropriate rent increases in the current WA market. Having basic repairs carried out should not result in a rent increase. These repairs should also be carried out in a timely manner.

“Major renovations such as a new kitchen and bathroom would likely warrant negotiation between both parties as the lease came up for renewal. In situations like these, an experienced property manager is needed to ensure both the owner and tenant know their rights and responsibilities to ensure the best possible outcome for both parties.”

Another major issue the report raised was the difficulty tenants have in securing long-term leases.

“While long-term rental leases remain uncommon, there is nothing legislated in the Residential Tenancies Act (RTA) that prevents tenants from entering into long-term leases. In fact, many landlords prefer a long-term tenant but it is the tenants who request shorter lease terms in their applications for a rental property," Mr Collins told WILLIAMS MEDIA.

"In order for long-term leases to become more common, this will require an attitude shift between both owners and tenants to create a new normal,” Mr Collins said.

Mr Collins says the upcoming RTA review will provide the perfect opportunity to update the system to better meet the needs of tenants and property owners.

"It is imperative that all parties are given a voice during the process to ensure that private rentals remain a viable housing option into the future," Mr Collins added.